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Authors I Wayan Gde Sarmawa, Ida Ayu Oka Martini, Ida Ayu Putu Widani Sugianingrat, Anak Agung Dwi Widyani, Ni Ketut Karwini

Title Innovative Work Performance as Mediation Organizational Culture On Employee Performance Original file 34445-91519-1-SM.DOCX 2020-09-13

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Submitter Dr. Sarmawa I Wayan Gde

Date submitted September 13, 2020 - 09:12 PM

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Status Published Vol 18, No 2: October 2022

Initiated 2022-10-30

Last modified 2022-10-31

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Authors

Name I Wayan Gde Sarmawa

Affiliation Faculty of Economics and Business, Warmadewa University

Country Indonesia

Bio Statement —

Principal contact for editorial correspondence.

Name Ida Ayu Oka Martini

Affiliation Faculty of Economics and Business, Universitas Pendidikan Nasional

Country Indonesia

Bio Statement —

Name Ida Ayu Putu Widani Sugianingrat

Affiliation Faculty of Economics, Business, and Tourism of the Hindu University of Indonesia

Country Indonesia

Bio Statement —

Name Anak Agung Dwi Widyani

Affiliation Faculty of Economics and Business, Universitas Mahasaraswati

Country Indonesia

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Name Ni Ketut Karwini

Affiliation Sekolah Tinggi Ilmu Manajemen Handayani

Country Indonesia

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Title and Abstract

Title Innovative Work Performance as Mediation Organizational Culture On Employee Performance

Abstract

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The purpose of this study was to analyze (1) the influence of organizational culture on positive work behavior; (2) the influence of organizational culture and innovative work behavior on employee performance; and (3) the role of innovative work behavior in mediates the relationship of organizational culture with employee performance. The study was conducted at the Rural Credit Bank (RCB) in Badung Regency, Bali Province. The number of research samples is 52 RCB. The respondents in this study are 156 employees. The data is analyzed using SmartPLS 3.2.8 program. The result shows that organizational culture shows a significant positive effect on innovative work behavior. Work culture and innovative work behavior also have a significant positive effect on employee performance at RCB. It is concluded that innovative work behavior acts as a mediator in the relationship between organizational culture and the performance of RCB employees.

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ROA audit delay board of commissionersbrand loyalty capital structurecompany size corporate governance corporate social responsibility (CSR) customer loyalty

customer satisfaction

dividend payout ratio

economic growthfirm characteristics firm value karakteristik perusahaan need for achievement population

profitabilityrealized gains and lossesself-efficacy

sustainability report Journal Help

FFOONNTT SSIIZZEE

OPEN JOURNAL SYSTEMS

KKeeyywwoorrddss:: organizational culture, innovative work behavior, employee performance

Prestasi Kerja Inovatif Sebagai Mediasi Budaya Organisasi Terhadap Kinerja Karyawan

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Tujuan penelitian ini adalah untuk menganalisis (1) pengaruh budaya organisasi terhadap perilaku kerja positif; (2) pengaruh budaya organisasi dan perilaku kerja inovatif terhadap kinerja pegawai; dan (3) peran perilaku kerja inovatif dalam memediasi hubungan budaya organisasi dengan kinerja pegawai. Penelitian dilakukan di Bank Perkreditan Rakyat (BPR) di Kabupaten Badung, Provinsi Bali. Jumlah sampel penelitian adalah 52 RCB. Responden dalam penelitian ini adalah 156 karyawan. Data dianalisis menggunakan program SmartPLS 3.2.8. Hasil penelitian menunjukkan bahwa budaya organisasi berpengaruh positif signifikan terhadap perilaku kerja inovatif. Budaya kerja dan perilaku kerja inovatif juga berpengaruh positif signifikan terhadap kinerja karyawan di RCB. Disimpulkan bahwa perilaku kerja inovatif berperan sebagai mediator dalam hubungan antara budaya organisasi dengan kinerja pegawai RCB.

KKaattaa kkuunnccii:: budaya organisasi, perilaku kerja yang inovatif, kinerja karyawan

Indexing

Keywords organizational culture, innovative work behavior, employee performance

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References

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de SPIEGELAERE, S. (2014). The Employment Relationship and Innovative Work Behaviour. In The Employment Relationship and Innovative Work Behaviour. https://core.ac.uk/download/pdf/34607739.pdf Dewi, N. N., & Wibowo, R. (2020). The effect of leadership style, organizational culture, and motivation on employee performance. Management Science Letters, 10(9), 2037–2044. https://doi.org/10.5267 /j.msl.2020.2.008

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/Electroniccopyavailableat:https://ssrn.com/abstract=3153089Electroniccopyavailableat:https://ssrn.com /abstract=3153089http://ijbassnet.com/

Fidyah, D. N., & Setiawati, T. (2019). Influence of Organizational Culture and Employee Engagement on Employee Performance: Job Satisfaction as Intervening Variable. Review of Integrative Business and Economics Research, 9(4), 64–81. www.telkom.co.id

Haque, A. bin, Mahmud, A. al, & Hossain, A. (2019). Influence of Compensation and Organizational Culture on Employee Performance: A Study on IT Firms of Dhaka, Bangladesh. International Journal of Human Resource Studies, 9(3), 101. https://doi.org/10.5296/ijhrs.v9i3.15048

Harwiki, W. (2016). The Impact of Servant Leadership on Organization Culture, Organizational Commitment, Organizational Citizenship Behaviour (OCB) and Employee Performance in Women Cooperatives. Procedia - Social and Behavioral Sciences, 219, 283–290. https://doi.org/10.1016/j.sbspro.2016.04.032

Henry Syauta, J., Afnan Troena, E., & Setiawan, M. (2012). The Influence of Organizational Culture, Organizational Commitment to Job Satisfaction and Employee Performance (Study at Municipal Waterworks of Jayapura, Papua Indonesia). International Journal of Business and Management Invention ISSN, 1(1), 69–76. www.ijbmi.org69|Page

Hughes, M., Rigtering, J. P. C., Covin, J. G., Bouncken, R. B., & Kraus, S. (2018). Innovative Behaviour, Trust and Perceived Workplace Performance. British Journal of Management, 29(4), 750–768. https://doi.org/10.1111 /1467-8551.12305

Idris, I., Suyuti, A., Supriyanto, A. S., & As, N. (2022). Transformational Leadership, Political Skill, Organizational Culture, And Employee Performance: A Case From Tourism Company In Indonesia.

Geojournal of Tourism and Geosites, 40(1), 104–110. https://doi.org/10.30892/GTG.40112-808 Idris, J. M. (2017). An Assessment Of The Impact Of Organizational Culture On Employee Performance.

International Journal of Development and Management Review (INJODEMAR), 12(1), 178–183. DOI 10.30892/gtg.40112-808

Iskandar, R., Mohammad Awadh, A., & Saad, M. (2013). Impact of Organizational Culture on Employee Performance. International Review of Management and Business Research, 2(1), 168–176.

Joseph, O. O., & Kibera, F. (2019). Organizational Culture and Performance: Evidence From Microfinance

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Joseph, O. O., & Kibera, F. (2019). Organizational Culture and Performance: Evidence From Microfinance Institutions in Kenya. SAGE Open, 9(1). https://doi.org/10.1177/2158244019835934

Jufrizen, Mukmin, Nurmala, D., & Jasin, H. (2021). Effect of Moderation of Work Motivation on the Influence of Organizational Culture On Organizational Commitment and Employee Performance. International Journal of Business Economics (IJBE). https://doi.org/10.30596/ijbe.v2i2.6710

Kessel, M., Hannemann-Weber, H., & Kratzer, J. (2012). Innovative work behavior in healthcare: The benefit of operational guidelines in the treatment of rare diseases. Health Policy, 105(2–3), 146–153. https://doi.org /10.1016/j.healthpol.2012.02.010

Khan, M. A., Ismail, F. B., Hussain, A., & Alghazali, B. (2020). The Interplay of Leadership Styles, Innovative Work Behavior, Organizational Culture, and Organizational Citizenship Behavior. SAGE Open, 10(1).

https://doi.org/10.1177/2158244019898264

Kim, M. S., & Koo, D. W. (2017). Linking LMX, engagement, innovative behavior, and job performance in hotel employees. International Journal of Contemporary Hospitality Management, 29(12), 3044–3062.

https://doi.org/10.1108/IJCHM-06-2016-0319

Lanjar Sari Corry Yohana, N., & Ryna Parlyna, M. (2018). Relationship Between Organizational Culture And Work Motivation With Performance In Employee Agency In Regional Employment In Jakarta. Econosains, 16(2), 167–176. https://doi.org/10.21009/econosains.0162.08

Leong, C. T., & Rasli, A. (2014). The Relationship between Innovative Work Behavior on Work Role Performance: An Empirical Study. Procedia - Social and Behavioral Sciences, 129, 592–600. https://doi.org /10.1016/j.sbspro.2014.03.717

Li, X., & Zheng, Y. (2014). The Influential Factors of Employees' Innovative Behavior and the Management Advice. Journal of Service Science and Management, 07(06), 446–450. https://doi.org/10.4236 /jssm.2014.76042

Liu, Y., Wang, W., & Chen, D. (2019). Linking Ambidextrous Organizational Culture to Innovative Behavior: A Moderated Mediation Model of Psychological Empowerment and Transformational Leadership. Frontiers in Psychology, 10. https://doi.org/10.3389/fpsyg.2019.02192

Menaka, & Chandrika. (2015). Impact of Organizational Culture on Employee Job Performance in a Large Scale Apparel Company (BASL-Finishing). 2nd International HRM Conference, 2(1), 65–74.

Nwakoby, N. P., Okoye, J. F., & Anugwu, C. C. (2019). Effect of Organizational Culture on Employee Performance in Selected Deposit Money Banks in Enugu State. Journal of Economics and Business, 2(4).

https://doi.org/10.31014/aior.1992.02.04.162

Park, N. K., Jang, W., Thomas, E. L., & Smith, J. (2021). How to Organize Creative and Innovative Teams:

Creative Self-Efficacy and Innovative Team Performance. Creativity Research Journal, 33(2), 168–179.

https://doi.org/10.1080/10400419.2020.1842010

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Saban, D., Basalamah, S., Gani, A., & Rahman, Z. (2020). Impact Of Islamic Work Ethics, Competencies, Compensation, Work Culture On Job Satisfaction And Employee Performance: The Case Of Four Star Hotels. European Journal of Business and Management Research, 5(1). https://doi.org/10.24018 /ejbmr.2020.5.1.181

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Shahzadi, I., Javed, A., Shahzaib Pirzada, S., Nasreen, S., & Khanam, F. (2014). Impact of Employee

Motivation on Employee Performance. In European Journal of Business and Management www.iiste.org ISSN (Vol. 6, Issue 23). Online. www.iiste.org

Shirali, G. A., Afshin, D. K., Angali, K. A., & Kalhori, S. R. N. (2022). Modeling and assessing the influence of organizational culture norms on safety culture using Bayesian networks approach: the case of the oil industry. International Journal of System Assurance Engineering and Management, 13(1), 304–317.

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Stacho, Z., Potkány, M., Stachová, K., & Marcineková, K. (2016). The organizational culture as support of innovation processes' management: A case study. International Journal for Quality Research, 10(4), 769–784.

https://doi.org/10.18421/IJQR10.04-08

Strychalska-Rudzewicz, A. (2014). Determinants Of Organizational Culture That Influence Innovation. The Case Of Production Companies In Poland. Journal of Lviv Polytechnic National University, 98–105.

Sudarnice, S. (2020). Increasing Innovative Performance through Organization Culture, Work Satisfaction, and Organization Commitments. Integrated Journal of Business and Economics, 4(1), 88. https://doi.org /10.33019/ijbe.v4i1.251

Supriyanto, A. S. (2019). Obtaining factors affecting innovative work behavior (IWB) of a local bank employee under Islamic leadership: Application of partial least squares regression method. Industrial Engineering and Management Systems, 18(3), 417–425. https://doi.org/10.7232/iems.2019.18.3.417 Suryosukmono, G., Praningrum, P., & Pareke, F. J. (2022). Linking Person-Job Fit and Perceived Organization Support to Increase Public Employee Performance: The Role of Innovative Behavior in Workplace. Asia Pacific Management and Business Application, 010(03), 275–290. https://doi.org/10.21776

/ub.apmba.2022.010.03.3

Susilo, H. (2018). Improving Innovative Work Behavior and Organizational Performance through Workplace Spirituality and Perceived Organizational Support. Advances in Economics, Business and Management Research, 93, 101–105.

Szczepańska-Woszczyna, K. (2014). The Importance Of Organizational Culture For Innovation In The Company. Forum Scientiae Oeconomia , 2(3), 27–39.

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Tianingrum, A. S. (2021). Effect of Leadership and Organizational Culture on Employee Performance. APTISI Transactions on Management (ATM), 6(2), 158–166. https://doi.org/10.33050/atm.v6i2.1746

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Transactions on Management (ATM), 6(2), 158–166. https://doi.org/10.33050/atm.v6i2.1746

Torres, F. C., Espinosa, J. C., Dornberger, U., & Acosta, Y. A. C. (2017). Leadership and Employees’ Innovative Work Behavior: Test of a Mediation and Moderation Model. Asian Social Science, 13(9), 9. https://doi.org /10.5539/ass.v13n9p9

Uddin, M. J., Luva, R. H., & Hossain, S. M. M. (2012). Impact of Organizational Culture on Employee Performance and Productivity: A Case Study of Telecommunication Sector in Bangladesh. International Journal of Business and Management, 8(2). https://doi.org/10.5539/ijbm.v8n2p63

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Jurnal Economia, Volume 14, Nomor 1, April 2018

186

Innovative Work Performance as Mediation Organizational Culture On Employee Performance

I Wayan Gde Sarmawa^1*, Ida Ayu Oka Martini², Ida Ayu Putu Widani Sugianingrat³, Anak Agung Dwi Widyani⁴, Ni Ketut Karwini⁵

1Faculty of Economics and Business, Warmadewa University, Bali, Indonesia, wayangdesarmawa@gmail.com

2Faculty of Economics and Business, Universitas Pendidikan Nasional, Bali, Indonesia, dy.oka.martini@gmail.com

3Faculty of Economics, Business and Tourism, Universitas Hindu Indonesia, Bali, Indonesia, widanidayu147@gmail.com

4Faculty of Economics and Business, Universitas Mahasaraswati, Indonesia, dwiwidyani11973@gmail.com

5Sekolah Tinggi Ilmu Manajemen Handayani, Indonesia, niketutkarwini1@gmail.com

*Corresponding author

Abstract

The purpose of this study was to analyze (1) the influence of organizational culture on positive work behavior; (2) the influence of organizational culture and innovative work behavior on employee performance; and (3) the role of innovative work behavior in mediates the relationship of organizational culture with employee performance. The study was conducted at the Rural Credit Bank (RCB) in Badung Regency, Bali Province. The number of research samples is 52 RCB. The respondents in this study are 156 employees. The data is analyzed using SmartPLS 3.2.8 program. The result shows that organizational culture shows a significant positive effect on innovative work behavior. Work culture and innovative work behavior also have a significant positive effect on employee performance at RCB. It is concluded that innovative work behavior acts as a mediator in the relationship between organizational culture and the performance of RCB employees.

Keywords: organizational culture, innovative work behavior, employee performance

Prestasi Kerja Inovatif Sebagai Mediasi Budaya Organisasi Terhadap Kinerja Karyawan

Abstrak

Tujuan penelitian ini adalah untuk menganalisis (1) pengaruh budaya organisasi terhadap perilaku kerja positif; (2) pengaruh budaya organisasi dan perilaku kerja inovatif terhadap kinerja pegawai; dan (3) peran perilaku kerja inovatif dalam memediasi hubungan budaya organisasi dengan kinerja pegawai. Penelitian dilakukan di Bank Perkreditan Rakyat (BPR) di Kabupaten Badung, Provinsi Bali. Jumlah sampel penelitian adalah 52 RCB. Responden dalam penelitian ini adalah 156 karyawan. Data dianalisis menggunakan program SmartPLS 3.2.8. Hasil penelitian menunjukkan bahwa budaya organisasi berpengaruh positif signifikan terhadap perilaku kerja inovatif. Budaya kerja dan perilaku kerja inovatif juga berpengaruh positif signifikan terhadap kinerja karyawan di RCB. Disimpulkan bahwa perilaku kerja inovatif berperan sebagai mediator dalam hubungan antara budaya organisasi dengan kinerja pegawai RCB.

Kata kunci: budaya organisasi, perilaku kerja yang inovatif, kinerja karyawan

History: Received: 13 September 2020 Revised: 25 July 2022 Accepted: 13 September 2022 Citation (APA 6^th): Sarmawa,I,W,G,I., Martini,I,D,O., Sugianingrat,I,A,P,W., Widyani,A,A,D., & Karwini, N,K., (2022). Innovative Work Performance as Mediation Organizational Culture On Employee Performance.

Jurnal Economia, 18(2), 186-203. https://doi.org/10.21831/economia.v18i2.34445

Jurnal Economia, Vol. 18, No. 2, October 2022, 186-203 P-ISSN: 1858-2648 Website: https://journal.uny.ac.id/index.php/economia E-ISSN: 2460-1152

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Innovative Work Performance as Mediation Organizational Culture On Employee Performance (Sarmawa., et al)

187

Te mp lat e of Ju rna l E con om ia

INTRODUCTION

Rural Credit Bank (RCB) is one of the financial institutions that serve the community in financial matters, especially in rural communities that need funds for business development. The higher the need for funds needed by the community, the more RCB will grow in the community. This has an impact on the intense competition between the RCB. Aside from occurring among RCBs, it must also compete with other financial institutions such as cooperatives and other financial institutions. Therefore, RCB always tries to improve performance through ways, one of which is improving the performance of its employees. It is realized that company performance is the key to the company’s success, including banking.

Improving employee performance at the global level is very important to continue to be done to maintain the existence of RCB. To improve employee performance, it is necessary to do factors that can improve employee performance. In various references, the factors that influence multi-dimensional factors, so it needs to be very selective in determining the factors that will be prioritized to be addressed.

Building good work habits such as work discipline, accuracy, cooperation, honesty, and other habits is one culture that needs to be nurtured and developed continuously.

(Iskandar et al., 2013) states a strong organizational culture helps improve the level of performance in employees. Several assessments and studies prove that organizational culture makes a significant positive contribution to companies in various sectors. (Saban et al., 2020) and (Tianingrum, 2021) found a positive cultural relationship to the performance of four-star hotel employees in Sulawesi. The results of this study about the results of previous studies such as those conducted by (Uddin et al., 2012); (Iskandar et al., 2013); (Paschal & Nizam, 2016); (J. M. Idris, 2017); (I. Idris et al., 2022); (Fajrin et al., 2018); (Haque et al., 2019); and (Joseph & Kibera, 2019). However, research conducted by (J. M. Idris, 2017) found that organizational culture did not improve Banjarmasin Post employees' performance. (Nwakoby et al., 2019) also found the bureaucratic culture to be insignificant in the performance of banking companies in the state of Unugu.

In addition to culture, creative and innovative work organizations are also factors that strongly support the company. Innovative behavior affects employee performance (Suryosukmono et al., 2022). Creative and innovative employees have far better abilities than those who are not creative and not innovative. This argument is supported by the contribution of the results of research conducted by (Kim & Koo, 2017); (Dörner, 2012);

(de Spiegelaere, 2014); (Li & Zheng, 2014); (Leong & Rasli, 2014); (Hughes et al., 2018);

(Susilo, 2018); and (Park et al., 2021). But research (Supriyanto, 2019) found innovative work policies had no significant effect on the performance of employees of Bank Jatim Syariah Surabaya. There seems to be a gap between these two variables in the effect on company performance, so it is important to conduct research. The novelty of this study is innovative work placement as a mediating variable in the relationship of organizational crocodiles to employee performance.

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Jurnal Economia, Volume 18, Number 2, October 2022

188

Te mp lat e of Ju rna l E con om ia

THEORETICAL REVIEW, PREVIOUS RESEARCH, AND HYPOTHESIS Employee Performance

Employee performance is at the forefront of organizational success. Therefore, many organizations focus on improving the performance of every employee to spur improvement in organizational performance. Employee performance is a serious concern for many organizations, both profit, and non-profit organizations.

Employee performance is often paired with the terms work performance, work productivity, and work results. Employee performance is the ability to produce achievements by organizational demands (Shahzadi et al., 2014). According to (Emita &

Sukrisno Sugeng, 2021) performance is expressed as the ability of employees to produce products at a certain time.

Measurement of employee performance at RCB is carried out through the following criteria: (1) The level of quality of work results; (2) Tenacity and endurance at work; (3) level of discipline and attendance; (4) The level of cooperation between colleagues; (5) work safety issues; (6) responsibility for work results; (7) level of initiative/creativity. The quality of the work is indicated by the lack of mistakes, work, or complaints made by the parties concerned. Tenacity and endurance work is shown by the readiness of employees to work fully even overtime when needed. Discipline and attendance of employees are also important measures of employee performance. Adherence to all applicable rules, as well as the accuracy of attendance/return from work, is a measure of an employee's performance. An equally important factor is the ability to work together or work in teams because work assignments in an organization are collegial responsibilities. Work safety is a part of employee performance measurement, this is indicated by the lack of work events/accidents. Performance measures are also demonstrated by the ability to account for the results of work that has been completed. Finally, work initiative/creativity is the ability of an employee to complete work or address work problems accurately and appropriately.

Employee performance is influenced by very complex factors. Theoretically, there are three groups of factors that can influence behavior and work performance, namely individual, organizational and psychological factors. Individual factors can affect the performance of an employee, one of which is innovative work behavior (Hughes et al., 2018). This argument is also supported by several research findings which find that innovative work behavior has a significant positive effect on employee performance, namely (Sanusi & Dibyantoro, 2022); (Kim & Koo, 2017); (Leong & Rasli, 2014);

(Hughes et al., 2018); and (Susilo, 2018).

One organizational factor that affects employee performance is organizational culture. The strength of the culture that is applied in the organization affects the performance of employees in the organization. This statement is supported by several research findings which found that organizational culture has a significantly positive effect on employee performance, namely (Henry Syauta et al., 2012); (Iskandar et al., 2013);

(Harwiki, 2016); (Jufrizen et al., 2021); (Lanjar Sari Corry Yohana & Ryna Parlyna, 2018); and (Nwakoby et al., 2019).

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Innovative Work Behavior (IWB)

Innovative work behavior is an important factor concerning employee performance (Dörner, 2012). (Kim & Koo, 2017) argue that innovative behavior is the ability of employees to produce new ideas, products, processes, or procedures in their work, work units, or even within the organization as a whole. Innovative work behavior is defined as employee actions aimed at generating, implementing, and implementing new ideas, products, processes, and methods from work positions, departmental units, or organizations. Innovative behavior is a complex behavior consisting of how employees generate new ideas and implement these ideas (Torres et al., 2017).

According to (Suryosukmono et al., 2022) and (de Spiegelaere, 2014), measuring innovative work behavior in employees can be done through four activities namely problem identification, idea exploration, idea development, and idea actualization. In carrying out work activities, certainly cannot be avoided various problems that can hamper work activities, so it is necessary to identify various problems that are likely to interfere with work activities. After knowing the various problems, then explored ideas that can overcome/solve the work problem. Based on many ideas obtained, then the selection of ideas that have the most appropriate possibility to overcome/solve existing problems is made. Finally, implementing ideas that have a high likelihood of overcoming the problem at hand. Innovative work behavior can increase the value of products, services, work processes, marketing, distribution, and policy-making (Suryosukmono et al., 2022).

The consistent and consistent application of innovative work behavior measures can improve an employee's performance. This argument is supported by several research findings that show that innovative work behavior has a significant positive effect on employee performance, namely (Kim & Koo, 2017); (Dörner, 2012); (de Spiegelaere, 2014); (Li & Zheng, 2014); (Leong & Rasli, 2014); (Hughes et al., 2018); (Susilo, 2018);

and (Park et al., 2021). Based on theoretical and empirical studies, the research hypotheses are built:

Hypothesis 1: Innovative work behavior has a significant positive effect on employee performance

Organizational Culture

Organizational culture is one of the factors that cannot influence the performance of employees. Organizational culture is the characteristics and tangible personalities that originate in every organization. In general, organizational culture can be referred to as a way of life in an organization that exists in the long run. 'Way of life' includes everything that has happened in the organization for a long time such as being on time at the office or performing assigned tasks, absence of dress codes, bearing company logos on clothing, boss behavior with subordinates, and vice versa, staff behavior towards customers, clarity in rules, regulations, and procedures and obedience in compliance, management's attitude towards the welfare of workers, openness in the communication system in the

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organization or other things that someone can think of in the work of the organization (Baek et al., 2019). Organizational culture is also interpreted as values, principles, traditions, and attitudes that influence the behavior of organizational members (Dewi &

Wibowo, 2020). The organizational culture between one organization and another is not the same, therefore indicators for measuring organizational culture in an organization are also different.

Measurement of organizational culture in the banking sector, especially in RCB in this study refers to organizational culture inventory (OCI). Organizational Culture Inventory (OCI) is an instrument designed to evaluate organizational culture in terms of behavioral norms and expectations related to shared beliefs and values of members of the organization (Shirali et al., 2022). OCI measures individuals and groups within the company as expected from them and will be strengthened and valued. It also allows members of the organization to consider the culture that for them would be ideal to maximize business performance, and what kind of behavior is expected of them in that ideal culture. Therefore, the difference between the current organizational culture and the ideal of an organization can be measured by OCI. There are 12 indicators in organizational culture inventory, namely: (1) achievement; (2) self-actualization; (3) humanistic encouragement; (4) affiliation; (5) approval; (6) conventional; (7) depends; (8) avoidance; (9) opposition; (10) strength; (11) competitive; (12) perfectionists. These twelve indicators are grouped into three dimensions, namely Constructive Culture; Passive- Defensive Culture; Aggressive-Defensive Culture. Whatever form of organizational culture is applied, the goal is to encourage the growth of creativity and work innovation and maximize employee performance. Through the application of a stronger organizational culture, employees are expected to become more creative and innovative.

This argument is driven by the findings of several studies which state that a stronger organizational culture can significantly foster more innovative employee work behavior (Dörner, 2012); (Szczepańska-Woszczyna, 2014); (Stacho et al., 2016); (Liu et al., 2019);

(Khan et al., 2020); (Sudarnice, 2020).

In addition, a strong culture can also encourage employee performance improvement. This statement is proven by several studies conducted by (Uddin et al., 2012); (Iskandar et al., 2013); (Paschal & Nizam, 2016); (J. M. Idris, 2017); (I. Idris et al., 2022); (Fajrin et al., 2018); (Haque et al., 2019); and (Joseph & Kibera, 2019). Based on this argument, the following research hypotheses are constructed:

Hypothesis 2: Organizational culture has a significant positive effect on innovative work behavior

Hypothesis 3: Organizational culture has a significant positive effect on employee performance

Because several research findings have found a significant direct effect between organizational culture on innovative work behavior, as well as innovative work behavior that has a direct effect on employee performance, then based on the concept (Baron &

Kenny, 1986), it can be assumed that there is an indirect relationship of organizational

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culture with employee performance through innovative work behavior. Based on this argument, the research hypothesis is constructed as follows:

Hypothesis 4: Innovative work behavior significantly acts as a mediator in the relationship of organizational culture to employee performance.

METHOD

This research is designed in the form of quantitative research, which is to correlate structurally between organizational culture variables (independent variables), innovative work behavior (mediating variables), and employee performance (dependent variables).

Organizational culture consists of 12 indicators divided into three dimensions, innovative work behavior consists of four indicators, and employee performance consists of 7 indicators.

The study was conducted at the Rural Credit Bank (RBC) operating in the Badung region totaling 52 units. The research respondents were bank employees, who were randomly drawn from each of the three employees at each of the Rural Credit Banks in the Badung region.

Data collection is done by interviewing respondents directly based on a questionnaire that has been designed previously. Data that has been collected is then tabulated the data and proceeded with data processing using the SmartPLS 3.2.8 program.

The stages of data analysis using the SmartPLS program consist of 3 stages, namely:

evaluation of measurement models, evaluation of structural models, fit models, and hypothesis testing. The conceptual framework of this study is shown in Figure 1.

Figure 1. Conceptual Framework and Research Hypotheses

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FINDING AND DISCUSSION

Testing the validity of the data seen through the outer loading coefficient shows that all indicators used in the research model have loading values ranging between 0.505 (Y11) - 0.943 (X14) and are valid. That is, all research indicators are valid because they have an outer loading value greater than 0.50. While reliability testing is done by looking at the value of Cronbach's Alpha or composite reliability. The results of the analysis showed the value of Cronbach's alpha and composite reliability ranged from 0.701 to 0.893 > 0.60.

Based on this, all research variables with their indicators are valid and reliable.

Furthermore, testing the accuracy of the research model through the coefficient of R Square (R²) and Q Square (Q²).

The results of calculations with the SmartPLS program show the coefficient R² as in Table 1.

Based on the R² values in Table 1, the Q² coefficient can be calculated with the following formulation:

Q² = 1 – (1 – R²1) (1 – R²2) Q² = 1 – (1 – 0.111) (1 – 0.765) Q² = 1 – (0.889) (0.235)

Q² = 1 – 0.2089 Q² = 0.7911

Based on Table 1, it was found that the R-square value was 0.111 which means that 11.1% of the variation in the value of innovative work behavior could be explained by variations in organizational culture. Likewise, the R-square value of 0.765 explains that 76.5% of the variation in employee performance values can be explained by variations in organizational culture and innovative work behavior. Meanwhile, a Q-square value of 0.7911 implies that the model has a high predictive prevalence, so the model is predictable. The 0.791 figure can be interpreted by variations in employee performance of 79.1 percent, which can be explained by variations in organizational culture and innovative work behavior, while the remaining 20.9 percent is influenced by other variables outside the model. In more detail, the values contained in the SmartPLS program results are shown in Figure 2.

Table 1. R-Square Coefficient

Variables R Square Note

Innovative Work Behavior (Y1) 0.111 Moderat

Employee Performance (Y2) 0.765 Large

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Based on the results of data processing as shown in Figure 2, it can be displayed in tabular form, as shown in Table 2. effect of CSR on business sustainability through customer trust and customer loyalty).

Figure 2: PLS Result (modified)

Table 2. Direct and Indirect Relationships between Organizational Culture, Innovative Work Behavior, and Employee Performance

Variables Path

Coefficient p-value Note Independent Mediation Dependent

-

Innovative Work

Behavior (Y1)

Employee Performance (Y2)

0.701 0.000 significant

Organizational Culture (X)

Innovative Work

Behavior (Y1)

- 0,333 0.000 significant

Organizational

Culture (X) -

0,339 0,000 significant Organizational

Culture (X)

Innovative Work

Behavior (Y1)

0.234 0.000 significant

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Based on Table 2, the results of hypothesis testing show that organizational culture (X) and innovative work behavior (Y1) have a significant positive effect on employee performance (Y2). This result is shown through the path value in the organizational culture relationship (X) on employee performance (Y2) of 0.339 with a p-value of 0.000 <

0.05. The path value in the relationship of innovative work behavior (Y1) to employee performance (Y2) is 0.701 with a p-value of 0.000 < 0.05. The influence of organizational culture (X) on innovative work behavior (Y1) is also significantly positive, this is indicated by the path value of 0.333 with a p-value of 0.000 < 0.05. The results of testing the indirect effect of organizational culture (X) on employee performance (Y2) through innovative work behavior (Y1) were also significantly positive, as indicated by the path value of 0.234 with a p-value of 0.000 < 0.05. Based on the results of this analysis, all the research hypotheses (H1, H2, H3, and H4) were accepted.

Discussion

The influence of organizational culture on employee performance

The results of hypothesis testing indicate that organizational culture has a positive and significant effect on employee performance. This shows that the application of a better organizational culture will result in better employee performance. The test results prove that organizational culture is reflected through 3 (three) dimensions, namely constructive culture, passive-defensive culture, and aggressive-defensive culture with indicators related to employee performance at RBC in Badung Regency.

Badung is proven to have good categories which are reflected in indicators of humanistic encouragement (constructive cultural dimensions), conventional (passive- defensive cultural dimensions), and power (defensive-aggressive cultural dimensions) affecting employee performance which is strongly reflected in the level of work quality.

Improving the quality of employee performance can occur if the company prioritizes employee participation, is supportive, constructive, and is open to external influences. On the other hand, employee support characteristics such as working carefully and bureaucratically can be adjusted and compliance with regulations is very helpful in achieving optimal work quality. In addition, high responsibility, responsiveness to the demands of their superiors, and the ability to supervise subordinates greatly affect the level of quality of work. Banking management that is full of trust and risk requires a supportive culture between stakeholders, developing and transparent, prudent, responsible priorities are very necessary to avoid loss of public trust and banking risk.

This is consistent with previous research conducted by (Jufrizen et al., 2021). The results showed that a constructive organizational culture has a significant influence on employee performance. The significant influence shows that better company treatment in a constructive organizational culture will improve employee performance. Passive- defensive organizational culture also has a positive and significant influence on employee performance. This shows that doing work conservatively, corporate bureaucracy, central decision-making, and employee involvement in decision-making have a positive influence on employee performance. Aggressive-defensive organizational culture is one factor that

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has a positive and significant influence on employee performance. This emphasizes that critical attitude, argumentation, and the proper use of force, are not arbitrary, healthy competition, assuming employee competition can improve employee performance If the indicators are maximized.

Research conducted by (Paschal & Nizam, 2016) found that corporate culture is very important in every organization and it shows a positive impact on employee work performance. In addition, corporate culture positively influences the level of organizational productivity. Each individual has a different culture and belief and when they join an organization that has a different culture and belief, they must be allowed to internalize themselves with the culture and values of the organization to find out whether they can handle it or not. In cases where organizational culture must be changed, employees must be given preliminary information, so to increase group commitment and efficiency. The culture of the organization must bind all members and staff of the company because this will encourage uniformity among members of the organization and increase group commitment and efficiency.

Another research, namely (Fidyah & Setiawati, 2019) states that organizational culture as a social glue and a code of conduct is needed so that all parties can create the maximum performance for the company. Other research conducted by (Shahzadi et al., 2014) tried to evaluate the overall impact of organizational culture on employee performance. This indicates that there is a positive relationship between organizational culture and employee performance. A strong culture in the organization leads to increased employee commitment to achieving organizational goals. (Menaka & Chandrika, 2015) in their study stated that there is a positive relationship between organizational culture and performance. It is important to create a strong organizational culture to improve employee work performance by increasing adaptability, mission, involvement, and cultural consistency.

The influence of organizational culture on innovative work behavior

The results of hypothesis testing indicate that organizational culture has a positive and significant influence on innovative work behavior. This shows innovative work behavior will increase if a better organizational culture is applied.

Based on the results of indicators of organizational culture description, RCBs in Badung Regency have been labeled with good categories. That is reflected through indicators of a humanistic drive (constructive cultural dimensions), conventional (passive- defensive cultural dimensions), and power (defensive-aggressive cultural dimensions) influencing innovative work behavior and manifested in the exploration of opportunities.

Employees working in companies that prioritize their employee participation, with a supportive, constructive, and open culture of influence can easily identify opportunities that exist. Likewise, employees who work with caution, and bureaucracy, can be adjusted, and compliance with rules is very helpful in identifying opportunities. In addition, every employee who has a high sense of responsibility, and responsiveness, and can oversee subordination is very influential in finding and identifying opportunities. Banking

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management that is full of trust, full of risk, and highly competitive requires supportive behavior, openness, prudent priorities, responsible, and critical to change, maintaining a competitive culture will greatly assist in finding and identifying every opportunity that exists.

This is consistent with the research (Dörner, 2012) stating that the relationship between organizational culture and innovation has been the subject of extensive research over the past few decades. Research reveals that Quinn and Rohrbaugh's competitive value framework provides a meaningful structure for the ideational aspects of organizational culture. The analysis shows that the suitability of various cultures with the goals of organizational innovation can be explained based on the framework. Control theory is used to explain the relationship between organizational culture and innovation.

While culture illustrates the ideational aspect of organizational values, clan control explains its coordinating effects. The research hypothesis is that managers of innovative organizations tend to apply a culture of development, which emphasizes external orientation and flexibility. However, rational groups and cultures are to some extent consistent with innovative organizational goals and can thus be an appropriate social control strategy. The hierarchical culture emphasizes internal control and orientation and tends not to be found in innovative organizations. Moderator analysis of the relationship of cultural innovation reveals that it is not influenced by the difference between radical and additional innovation, and there is only weak evidence for the effect of adoption of innovation versus generation. Therefore, managers who follow the (radical) innovation strategy must develop a culture of development in their organizations. If innovation represents only a small part of a company's long-term goals, a rational culture oriented to efficiency and group culture might be the right choice.

Research conducted by (Strychalska-Rudzewicz, 2014) identified organizational culture factors related to corporate innovation, as well as determined the strength of this effect. The results showed that the number of applied product innovations (new brands and development) and process innovations (new brands and development) increased with the size of the company.

The effect of innovative work behavior on employee performance

Hypothesis testing results indicate that innovative work behavior has a positive and significant effect on employee performance. It shows innovative work behavior that is better along with improving employee performance.

Based on the results of the description of innovative work behavior indicators on RCB in Badung Regency, it is categorized as good. This is reflected through the opportunity exploration indicator, which affects employee performance and is strongly reflected in the level of work quality. Employee behavior is manifested in the ability to find and identify opportunities, which can occur due to mismatches and discontinuities due to incompatibility with expected patterns. Examples of these problems are problems with work, not meeting consumer needs, and changing trends. With the ability of